Hauliers go Dutch for cheaper diesel
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by Martial Tardy • The Dutch and French governments are planning to offer cut-price diesel to their hauliers in a move that could could bring down fuel prices throughout Europe.
The Dutch government has requested EU authorisation to introduce a purplecoloured diesel for professional operators, and France wants to follow suit.
The low-tax diesel would be available to all trucks, of whatever nationality, filling Diesel duty: UK up in the two countries.
The International Road Transport Union and national hauliers' associations across Europe have long campaigned for cheaper diesel. Since 1993 the minimum excise duty on diesel has been set at 245Ecu (£176) per 1000 litres—Britain applies a much higher rate of £368. The EU is planning to lift the agreed minimum diesel tax to £279 by 2002.
Governments planning to introduce taxes for hauliers below the harmonised minimum would have to win unanimous consent from all other EU states.
Officials say this may not be easy, as some will argue that neighbours with cheap diesel would gain a competitive advantage.
EU Transport Commissioner Neil Kinnock says that it would be possible to let individual member countries apply to reduce truck fuel tax, but he warns that organising it at a European level is a long way off. There are practical problems too. Producing a special coloured diesel for road hauliers and reorganising their fuel distribution network would cost oil companies a lot of money.